Pulte Homes Inc., one of the largest US homebuilders, has recorded a third-quarter loss of $787.8 million, blaming the soaring housing market.
The results included $1.18 billion on a pre-tax basis, or $3.33 a share after-tax, recorded for impairments, land-related charges and impairment of goodwill, compared with $87.7 million, or 22 cents a share in the same quarter last year.
Bloomfield Hills, Michigan.-based Pulte said revenue in the quarter fell 31 percent to $2.47 billion where analysts’ expected average revenue of $2.38 billion.
Quarterly sales
The homebuilder sold 7,468 homes during the third quarter, a 28 percent decline with the average price of a home sold slipping four percent to $322,000.
Net new home orders for the third quarter fell 37 percent to 4,582.
The company also said its ending backlog as of Sept. 30 was valued at $4.1 billion, or 12,042 homes, compared with a value of $5.8 billion, or 16,375 homes, at the end of last year’s third quarter.
'The operating environment continues to be challenged with elevated levels of new and resale home inventory, tightening of mortgage liquidity, and weak consumer sentiment for housing,' said Richard Dugas, Jr., president and chief executive, in a statement.
For the fourth quarter, the company expects income from continuing operations before items in a range of break-even to ten cents a share.
Shares rose 51 cents, or 3.4 percent, to $15.50 in after-hours trading after gaining 15 cents to $14.99 in the regular session.
October 26 2007
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